is there a way to get a 100% loan?

Question

i know it sounds crazy and I&#x27;m sure its almost impossible since all the banks are so tight with their money. I&#x27;m young (22) so don&#x27;t have money to put down, but want to get into real estate. i want to buy a income producing property, so the rent would pay for the mortgage, but i know they usually want 20% down, and obviously thats not an option. theres some very knowledgeable people on here so maybe someone has some good advise. i live in los angeles is it helps, i know sometimes counties and states have certain programs that others don&#x27;t

seanjohn007 · Answer

i know it sounds crazy and I&#x27;m sure its almost impossible since all the banks are so tight with their money. I&#x27;m young (22) so don&#x27;t have money to put down, but want to get into real estate. i want to buy a income producing property, so the rent would pay for the mortgage, but i know they usually want 20% down, and obviously thats not an option. theres some very knowledgeable people on here so maybe someone has some good advise. i live in los angeles is it helps, i know sometimes counties and states have certain programs that others don&#x27;t

depeche2 · Answer

no

SOJ · Answer

Talk to an owner who wants to sell. Negotiate, you must be a really damn good one too, with them to get them to sell to you with no money down. If the owner is paying 5%, offer them 8% per month with a balloon payment. If that is agreed then you either rent out the place at Loan rate,8% instead of 5% to break even, or you rent it out at the original cost, 5%, and pay the 3% out of your pocket...meaning you have to have a job that can pay the difference plus saving up. So if the balloon payment terms is at 5 years, you must have 20% down by then. This is just one way and again, you must be like Harvey Specter from Suits to negotiate and close this.

kingpincarbs · Answer

I just closed on a 100% loan. I used BB&amp;T CHIP program and actually walked away with $1500 at closing having all of my closing costs paid for by seller. 4% interest rate and no PMI.

seanjohn007 · Answer

I&#x27;m can negotiate, but deff not like spector. plus id rather not have to pay a ballon payment at the end. id rather have a mortgage that the rent will pay off, with no prepayment penalty. that way i can try to pay it off a little quicker when thing are good, or keep the difference some months

Dutch1976 · Answer

You dont always need 20% down..I know people who have done 10%.

SOJ · Answer

Just an option.  Now you understand that anything can be done.  Just ask yourself how.

seanjohn007 · Answer

thanks, its deff a creative thought. I&#x27;ve heard of some people getting 100% loans, but they broke it up into two loans. they got one at 80% and another one at 20% from a different source or loan. id like to go talk to someone about different options and what the best route is to go through. do you guys think id have more success going to a bank, or to a loan officer. i know i won&#x27;t get a loan on the spot, but at least i can get some ideas, and hopefully not get laughed at loland thanks again guys

wallstreetcappers · Answer

You need to find someone willing to offer you seller financing.

In this environment you wont be able to stroll in and get a 100% no money down investment property loan, they just dont exist anymore.

If you are able to find a creative loan it will likely be very high in fees and rate..which is because the risk is higher to the lender. If you put no skin in the game what is stopping you from walking on the loan?

matt2121 · Answer

the simple answer is no bank will give 100% financing for an investment property. you are unfortunaltey about 5 years too late. it is possible to get private or seller fiancning for 100% although rare.

is there a way to get a 100% loan?

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